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TAKEAWAYS KEY
- U.S. stock indexes rallied at midday Wednesday as President Donald Trump said he has "no intention" of firing Federal Reserve Chair Jerome Powell and made further comments suggesting a de-escalation of the trade war with China.
- Magnificent Seven shares and shares of Super Micro Computer, a server manufacturer, soared.
- Enphase Energy shares fell sharply, leading S&P 500 laggards, after the solar systems provider's first-quarter results fell short of analysts' estimates and warned China tariffs would hurt gross margins.
U.S. stock indexes rallied at midday Wednesday as President Donald Trump said he has "no intention" of firing Federal Reserve Chair Jerome Powell and made further comments suggesting a de-escalation of the trade war with China.
The tech-heavy Nasdaq and the S&P 500 were up 2.8% and 1.9%, respectively, while the blue-chip Dow Jones Industrial Average was 1.5% higher.
The Magnificent Seven group of stocks surged. Tesla (TSLA), a leader in the EV maker, saw its shares soar as CEO Elon’s promise to spend more time there offset poorer-than-expected quarter results.
Boeing (BA) shares rose after the plane manufacturer’s first quarter adjusted loss came in lower than expected.
AT&T (T) shares rose after the telecommunications giant reported first-quarter revenue and net phone subscriber additions above analysts’ estimates.
GE Vernova shares (GEV), which soared on the news that the firm’s results for its first quarter exceeded analyst expectations, surpassed.
Enphase Energy (ENPH) fell sharply, leading S&P 500 laggards, a day after the solar and battery systems provider’s first-quarter results fell short of analysts’ estimates and it warned of an expected hit to gross margins because of tariffs on China.
Baker Hughes shares (BKR), which are owned by the oilfield service provider, fell after it reported lower revenue than expected. CEO Lorenzo Simonelli also said that its outlook is “tempered by broader trade policy and macro uncertainty.”
Bristol Myers Squibb shares fell after the pharmaceutical firm said that its schizophrenia drug Cobenfy did not work as an add-on therapy for schizophrenia in a trial at a late stage.
Gold and oil futures fell. The yield of the 10-year Treasury note dipped. The U.S. Dollar gained ground against the Euro, Yen, and Pound. Most major cryptocurrencies increased, with bitcoin trading at over $93,000.
